Sector Changes for New LO Role?

Is it common to switch sectors when moving from SS ER to the first LO AM position? I have seen many LO analysts switch to a completely new sector with little overlap once they are on the job. If that is a widely accepted practice, then is switching from sellside to buyside in a different sector also acceptable?

2 Comments
 

Based on the most helpful WSO content:

  • Sector Switching in LO Roles: It is not uncommon for LO analysts to switch to a completely new sector with little overlap once they are on the job. Many buy-side places cover various sectors even if you are not technically a generalist.

  • Switching from SS to BS in Different Sectors: Switching from sell-side to buy-side in a different sector is also acceptable. There are plenty of people who have done one sector for 3+ years and then changed sectors successfully.

  • Quality of Research: The quality of research is becoming increasingly important, and there is a trend towards brokers who add substantial value. This shift is making it easier for those with strong research skills to transition between sectors and roles.

In summary, both switching sectors within LO roles and moving from SS to BS in a different sector are widely accepted practices.

Sources: Q&A: 3rd year ER analyst, Q&A: 3rd year ER analyst, Crazy to take MM offer if lead analyst in ER?, Choosing Between Buy Side vs Sell Side in Equity Research?, Overview of the Equity research Industry

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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